Land and Buildings Transaction Tax Scotland — LBTT Rates and Thresholds 2026

Scotland's Property Transaction Tax

Scotland devolved control of property transaction taxes in April 2015 when Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax for purchases north of the border. LBTT is administered by Revenue Scotland and has its own rates, thresholds, and relief system — distinct from SDLT in England and LTT in Wales.

If you are buying in Scotland, SDLT does not apply to you. LBTT does.

LBTT Residential Rates 2026

Like SDLT, LBTT is a banded tax — you pay the rate on the portion of the price that falls within each band, not the same rate on the whole amount.

Worked Example — Standard Purchaser

A buyer purchasing a property in Edinburgh for £380,000 pays:

• £0 – £145,000 @ 0% = £0
• £145,001 – £250,000 @ 2% = £2,100
• £250,001 – £325,000 @ 5% = £3,750
• £325,001 – £380,000 @ 10% = £5,500
• **Total LBTT: £11,350**

First-Time Buyer Relief in Scotland

Scotland offers a first-time buyer relief that raises the nil-rate threshold from £145,000 to £175,000. This means first-time buyers pay no LBTT on properties up to £175,000, and pay at the standard LBTT rates above that threshold.

The maximum saving from first-time buyer relief in Scotland is £600 (the 2% rate on £30,000). This is considerably more modest than the equivalent relief in England.

To qualify, the buyer must not have previously owned a residential property anywhere in the world. For joint purchases, all buyers must be first-time buyers. The relief is claimed through the LBTT return submitted to Revenue Scotland.

The Additional Dwelling Supplement (ADS)

Scotland's equivalent of England's additional dwelling surcharge is the Additional Dwelling Supplement (ADS). From April 2024, ADS is charged at **6%** of the total purchase price on purchases of additional residential properties. Note that ADS is charged on the full purchase price, not just the bands — this is different from how SDLT's surcharge operates in England, where the surcharge is applied band by band.

ADS applies when you are purchasing an additional residential property and will not be replacing your previous main home on or before the day of completion.

**ADS worked example on a £300,000 purchase:**

• Standard LBTT = £4,600
• ADS = 6% × £300,000 = £18,000
• **Total due: £22,600**

The 36-Month ADS Replacement Rule

As with SDLT in England, if you are buying a new main home before selling the previous one, you pay ADS at completion and can reclaim it once the old home is sold — provided the sale occurs within **36 months** of the new purchase. Claims are made to Revenue Scotland, not HMRC.

How to File LBTT Returns

LBTT returns must be submitted to Revenue Scotland within **30 days** of the effective date of the transaction (typically completion). This is a longer window than SDLT's 14 days. Your solicitor will submit the return on your behalf as part of the conveyancing process.

Comparing LBTT with SDLT

For higher-value properties, LBTT can be significantly more expensive than SDLT. The 10% band kicks in at just £325,001 in Scotland, whereas in England the equivalent 10% SDLT band does not start until £925,001. For a £1 million purchase, LBTT liability is considerably higher than SDLT would be.

For lower-value properties, LBTT tends to be cheaper. The nil-rate band of £145,000 compares favourably to SDLT's £125,000 threshold.

Use our Stamp Duty Calculator at Property Passport UK to compare SDLT costs for equivalent English properties — useful if you are weighing up purchasing options on either side of the border.

Revenue Scotland Contact

Revenue Scotland can be reached at www.revenue.scot. All LBTT returns are filed online through their portal. There is no postal filing option for LBTT.